Negotiating With The Cuban Sugar Industry A No Way Out Case Study Solution and Analysis
Introduction
Negotiating With The Cuban Sugar Industry A No Way Out Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized info supplier and a large detailed Science and Innovation publishing company through the combination of print media, audio-visual media and the network media.
Critical Concerns
CMP has actually spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market trends and forces bring particular challenges to the publishing market in basic and Negotiating With The Cuban Sugar Industry A No Way Out Case Study Help in specific. These elements consist of;
• Entrance of the new publishing firms in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The improvement of the macro markets have raised numerous concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the abilities of the business could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Negotiating With The Cuban Sugar Industry A No Way Out Case Study Solution has certain strengths that can be utilized to lower the hazards, overcome the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Negotiating With The Cuban Sugar Industry A No Way Out Case Study Analysis in the publishing market i.e. 60 years permits the company to supply high quality products at a lower expense using its prior experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its danger and supply high worth to its clients.
• Strong monetary position permits the business to think about a number of development opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the business has certain weak points which could increase restraints for the business in executing its development program. The weak points of Negotiating With The Cuban Sugar Industry A No Way Out Case Study Help are provided as follows;
• Despite of being a science and innovation publishing company, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It needs to propose certain expansion strategies to avoid its dependence over the Chinese markets to accomplish long term development.
Opportunities
Although, the development of the publishing market is declining given that 2008, affecting Negotiating With The Cuban Sugar Industry A No Way Out Case Study Help as well, but the development could be restored by availing particular chances presented in the market. The marketplace chances for CMP include;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could consider a development program through the expansion towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large financial resources.
Threats
The changing macro trends in the market and increasing competitors in the publishing industry has actually positioned certain hazards to Negotiating With The Cuban Sugar Industry A No Way Out Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause declining market share of Negotiating With The Cuban Sugar Industry A No Way Out Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the threat for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing particular strategies like aggressive promotion, quality items, and so on
• Entryway of new publishing companies in the industry along with presence of high competition increases the danger of losing the consumer base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP could not be determined. It could be analyzed from the Appendix III that the annual total revenues of Negotiating With The Cuban Sugar Industry A No Way Out Case Study Help throughout the duration 2000-2012 are growing at a high development rate, revealing that the yearly need of the items of CMP is growing and the company is rather effective in drawing in a large number of consumers at a potential cost.
In addition to it, the 2nd chart which shows the annual growth in the Negotiating With The Cuban Sugar Industry A No Way Out Case Study Analysis total possessions, reveals that the company is quite efficient in including value to its possessions through its earnings. The growth in assets reveals that the total value of the firm is likewise increasing with increasing the overall earnings. (Unidentified, 2013).
Another monetary analysis of the company using the given information could be the analysis concerning the distribution of total revenues of the business. Huge part of the profits of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business might move towards other company sections with a prospective growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis could be performed to learn the various external forces affecting the performance of the company and the recent patterns in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a significant effect on the frame of mind of individuals about the communist ideology of the government, for that reason, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. It could be said that the total political forces affecting CMP company are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the Negotiating With The Cuban Sugar Industry A No Way Out Case Study Help in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the need for the publishing market. Together with it, the financial policies associated with the import of books affect the total business at CPM. Nevertheless, China's economic conditions are rather favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP should focus on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological development in the reading methods etc. Improvement of science and innovation in addition to the rise of digital publishing could minimize the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Negotiating With The Cuban Sugar Industry A No Way Out Case Study Analysis includes the concerns of ecological neighborhoods over the use of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing must not be hazardous for the environment.
Legal.
Legal guidelines for the publishing sector at whole are high. The legal guidelines relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be authorized first by the Government to be gone into in the publishing market. The regulation forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to evaluate the appearance of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to bring in brand-new entrants to the publishing market. The presence of intense competition and the requirement of huge capital tends to demotivate brand-new entrants to go into in the market.
Hazard of Replacement.
Danger of Alternative is high for the Chinese Publishing Market. The substitute items for the released documents is the documents presented in the digital libraries on particular sites. The altering customer preferences towards digital learning increase the hazard of alternative for the industry.
Competitive Rivalry.
Competitive rivalry in the publishing market is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Negotiating With The Cuban Sugar Industry A No Way Out Case Study Solution consist of the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the existence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality files at competitive prices.
Competitors Analysis.
CMP operates in an extremely competitive industry with the presence of large number of competitors. Nevertheless, the company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Negotiating With The Cuban Sugar Industry A No Way Out Case Study Analysis consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was likewise established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of company scale. It is likewise among the prominent gamers in the publishing industry with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Consumers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased product portfolio offers high worth to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core company sectors to the new one can lead the business to lose demand of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the business along with the market analysis and the rival analysis, Alternative 2 is recommended to CMP to attain its future development. As the choices are moving towards digital publishing and the company require an immediate solution to prevent the declining market growth. Introduction of digital publishing might show to be an immediate option with low amount of threat for the company. The business could also think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the company should first gathers the information related to the customer need, the prospective markets, the government regulations and the data related to the rivals presented in the market. After that, the company needs to choose one prospective sector for its initial offering. It needs to gather research that how it could separate its digital publishing from the existing competitors' products. After all the actions above the business must go for the preliminary offering. If the initial offering shows a success, the business must go for the other markets. In this way the business would have the ability to implement its digital publishing program.
Conclusion
The development of the publishing industry is declining since 2008, revealing a risk to the business's long term presence, but the circumstance can be managed by considering a development strategy in the future. The business could consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.
